NC business tax climate ranked 44th in nation

North Carolina has the 7th worst business tax climate in the nation, according to this year's State Business Tax Climate Index.

North Carolina, whose climate was ranked 44th in the nation, rounded out the bottom with northeastern states like New Jersey (50th), New York (49th), Vermont (47th) and Rhode Island (46th). Wyoming, South Dakota and Nevada topped the list.

The report is compiled and released by the nonpartisan Tax Foundation, which aims to educate taxpayers on tax policy.

The index is based on the corporate, individual income, sales property and unemployment insurance taxes of each state . States with lower or no tax rates in these categories rank higher. For example Wyoming, ranked as having the best climate, has no corporate or individual income tax.

"The evidence shows that states with the best tax systems will be the most competitive in attracting new businesses and most effective at generating economimc and employment growth," the report states.

The news isn't all bad, though. North Carolina, which was ranked 46th last year, improved its position this year by lowering its sales tax rate to 4.75 percent from 5.75 percent and allowing its 3 percent income surtax to expire, the report said.